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Chevron Reports Third Quarter Net Income Of $5.3 Billion, Compared To $7.8 Billion In Third Quarter 2011

Net charges in the third quarter 2012 were $575 million, compared with $358 million in the year-ago period. The change between periods was mainly due to higher employee compensation and benefits expenses, corporate tax items and other corporate charges.

CAPITAL AND EXPLORATORY EXPENDITURES

Capital and exploratory expenditures in the first nine months of 2012 were $22.7 billion, compared with $20.8 billion in the corresponding 2011 period. The amounts included approximately $1.4 billion in 2012 and $1.0 billion in 2011 for the company’s share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 90 percent of the companywide total in the first nine months of 2012.

NOTICE

Chevron’s discussion of third quarter 2012 earnings with security analysts will take place on Friday, November 2, 2012, at 8:00 a.m. PDT. A webcast of the meeting will be available in a listen-only mode to individual investors, media, and other interested parties on Chevron’s Web site at www.chevron.com under the “Investors” section. Additional financial and operating information will be contained in the Earnings Supplement that will be available under “Events and Presentations” in the “Investors” section on the Web site.

Chevron will post selected fourth quarter 2012 interim performance data for the company and industry on its Web site on Thursday, January 10, 2013, at 2:00 p.m. PST . Interested parties may view this interim data at www.chevron.com under the “Investors” section.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets,” “outlook” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemical margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, severe weather or crude oil production quotas that might be imposed by the Organization of Petroleum Exporting Countries; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and litigation; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” on pages 29 through 31 of the company’s 2011 Annual Report on Form 10-K. In addition, such results could be affected by general domestic and international economic and political conditions. Other unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.

       
CHEVRON CORPORATION - FINANCIAL REVIEW

Attachment 1

(Millions of Dollars, Except Per-Share Amounts)
                 

CONSOLIDATED STATEMENT OF INCOME

(unaudited) Three Months Nine Months
Ended September 30 Ended September 30
REVENUES AND OTHER INCOME 2012 2011 2012 2011
Sales and other operating revenues * $ 55,660 $ 61,261 $ 174,336 $ 186,344
Income from equity affiliates 1,274 2,227 5,074 5,796
Other income 1,110 944 1,947 1,581
Total Revenues and Other Income 58,044 64,432 181,357 193,721
COSTS AND OTHER DEDUCTIONS
Purchased crude oil and products 33,982 37,600 106,807 113,560
Operating, selling, general and administrative expenses 7,046 6,493 19,839 19,116
Exploration expenses 475 240 1,371 830
Depreciation, depletion and amortization 3,370 3,215 9,859 9,598
Taxes other than on income * 3,239 3,544 9,125 12,948
Interest and debt expense - - - -
Total Costs and Other Deductions 48,112 51,092 147,001 156,052
Income Before Income Tax Expense 9,932 13,340 34,356 37,669
Income tax expense 4,624 5,483 15,317 15,813
Net Income 5,308 7,857 19,039 21,856
Less: Net income attributable to noncontrolling interests 55 28 105 84
NET INCOME ATTRIBUTABLE TO
CHEVRON CORPORATION $ 5,253 $ 7,829 $ 18,934 $ 21,772
 
PER-SHARE OF COMMON STOCK
Net Income Attributable to Chevron Corporation
- Basic $ 2.71 $ 3.94 $ 9.69 $ 10.93
- Diluted $ 2.69 $ 3.92 $ 9.62 $ 10.86
Dividends $ 0.90 $ 0.78 $ 2.61 $ 2.28
 
Weighted Average Number of Shares Outstanding (000's)
- Basic 1,945,840 1,984,643 1,954,584 1,991,091
- Diluted 1,960,141 1,998,673 1,968,939 2,005,381
 
* Includes excise, value-added and similar taxes. $ 2,163 $ 1,974 $ 5,879 $ 6,372
 
 
CHEVRON CORPORATION - FINANCIAL REVIEW Attachment 2
(Millions of Dollars)
(unaudited)
                     

EARNINGS BY MAJOR OPERATING AREA

Three Months Nine Months
Ended September 30 Ended September 30
2012   2011   2012   2011  
Upstream
United States $ 1,122 $ 1,508 $ 3,969 $ 4,907
International 4,017   4,693   12,961   14,142  
Total Upstream 5,139   6,201   16,930   19,049  
Downstream
United States 456 704 1,717 1,710
International 233   1,282   1,657   1,942  
Total Downstream 689   1,986   3,374   3,652  
All Other (1) (575 ) (358 ) (1,370 ) (929 )
Total (2) $ 5,253   $ 7,829   $ 18,934   $ 21,772  
 
 

SELECTED BALANCE SHEET ACCOUNT DATA

Sept. 30, 2012 Dec. 31, 2011
Cash and Cash Equivalents $ 21,313 $ 15,864
Time Deposits $ 8 $ 3,958
Marketable Securities $ 261 $ 249
Total Assets $ 226,864 $ 209,474
Total Debt $ 12,336 $ 10,152
Total Chevron Corporation Stockholders' Equity $ 132,941 $ 121,382
 
 
Three Months Nine Months
Ended September 30 Ended September 30

CAPITAL AND EXPLORATORY EXPENDITURES (3)

2012   2011   2012   2011  
United States
Upstream $ 1,696 $ 2,060 $ 5,043 $ 6,341
Downstream 442 362 1,121 894
Other 188   109   340   455  
Total United States 2,326 2,531 6,504 7,690
 
International
Upstream 5,841 4,583 15,419 12,444
Downstream 262 297 747 663
Other 1   2   3   5  
Total International 6,104   4,882   16,169   13,112  
Worldwide $ 8,430   $ 7,413   $ 22,673   $ 20,802  
 

(1) Includes mining operations, power generation businesses, worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, alternative fuels and technology companies.

(2) Net Income Attributable to Chevron Corporation (See Attachment 1)
(3) Includes interest in affiliates:
United States $ 84 $ 55 $ 182 $ 194
International 457   396   1,186   841  
Total $ 541   $ 451   $ 1,368   $ 1,035  
 
 

CHEVRON CORPORATION - FINANCIAL REVIEW

Attachment 3

           
Three Months Nine Months

OPERATING STATISTICS (1)

Ended September 30 Ended September 30
NET LIQUIDS PRODUCTION (MB/D): (2) 2012 2011 2012 2011
 
United States 440 453 452 471
International 1,249 1,353 1,302

1,389

Worldwide 1,689 1,806 1,754 1,860
 
NET NATURAL GAS PRODUCTION (MMCF/D): (3)
United States 1,184 1,260 1,180 1,276
International 3,778 3,496 3,840 3,663
Worldwide 4,962 4,756 5,020 4,939
 
TOTAL NET OIL-EQUIVALENT PRODUCTION (MB/D): (4)
United States 637 662 649 684
International 1,879 1,937 1,941 2,000
Worldwide 2,516 2,599 2,590 2,684
 
SALES OF NATURAL GAS (MMCF/D):
United States 5,447 5,812 5,457 5,767
International 4,008 4,303 4,349 4,375
Worldwide 9,455 10,115 9,806 10,142
 
SALES OF NATURAL GAS LIQUIDS (MB/D):
United States 152 160 154 160
International 92 78 87 87
Worldwide 244 238 241 247
 
SALES OF REFINED PRODUCTS (MB/D):
United States 1,183 1,252 1,231 1,267
International (5) 1,561 1,590 1,550 1,733
Worldwide 2,744 2,842 2,781 3,000
 
REFINERY INPUT (MB/D):
United States 779 897 877 883
International (6) 909 882 853 977
Worldwide 1,688 1,779 1,730 1,860
 
(1) Includes interest in affiliates.
(2) Includes: Canada - Synthetic Oil 45 44 42 40
Venezuela Affiliate - Synthetic Oil 1 31 14 31
(3) Includes natural gas consumed in operations (MMCF/D):
United States 43 72 49 71
International 504 477 523 482

(4) Oil-equivalent production is the sum of net liquids production and net gas production. The oil-equivalent gas conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil.

(5) Includes share of affiliate sales (MB/D): 491 500 522 549

(6) As of June 2012, Star Petroleum Refining Company crude-input volumes are reported on a 100 percent consolidated basis. Prior to June 2012, crude-input volumes reflect a 64 percent equity interest.





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